MasterCard Worldwide and Lloyds TSB today announced a new agreement to issue the majority of the Bank's credit card portfolio through the MasterCard scheme.
The deal is one of the largest of its kind ever seen in the UK. Lloyds TSB serves some 15 million retail customers through some 2,100 retail banking branches across the country.
Lloyds is already one of the largest MasterCard issuers in the UK and the agreement, which came into effect March 2007, will see a doubling in the size of MasterCard branded Lloyds TSB credit cards in issue over the next year.
Commenting on the announcement, John Bushby, General Manager, UK and Ireland, MasterCard Europe, said: "This deal represents a significant landmark in the evolution of our UK business and underscores our commitment to forging deeper relationships with our key banking customers.
"Our ability to provide banking customers with a combination of market expertise and analysis, as well as innovative and profitable product solutions has played an essential role in helping us to clinch this deal. We're delighted that Lloyds TSB, as a major High Street banking player, has chosen to partner with us."
Colin Walsh, the Credit Card Director for Lloyds TSB, said: "We have a very strong relationship with MasterCard and are delighted to enter into this partnership. The relationship allows us to develop unique products with MasterCard to meet our customers' everyday payment needs and build even greater security to protect our customers against credit card fraud."
"One of the main reasons why Lloyds TSB chose to partner with MasterCard is because of the consulting capabilities, wealth of insights, and analytic rigor of MasterCard Advisors," said Mr. Walsh. In addition to the planning and implementation of the deal, MasterCard Advisors has been working with Lloyds TSB on various strategic initiatives.
As well as MasterCard, Lloyds TSB will continue to offer American Express branded credit cards.